MNI BRIEF: Japan Mar Sentiment, Outlook Indexes Drop

The Japanese government has left its economic assessment unchanged despite both its sentiment and outlook indices falling, the Economy Watchers report released by the Cabinet Office showed Monday.

The sentiment index stood at a seasonally adjusted 49.8 in March, down from 51.3 in February, its first fall in two months, while the outlook index for two-to-three months ahead fell 1.8 points to 51.2 -- its first drop in five months. The indexes linked to the households and businesses fell but those of labour market rose.

“The economy is recovering moderately as a trend but it is marking time. Looking ahead, a moderate economic recovery is likely to continue, although there is concern over the impact of high prices,” the government said.

The weaker indexes could make Bank of Japan officials expecting solid private consumption cautious over the outlook for spending. (See MNI POLICY: April Services Data Key For Further BOJ Rate Move)